Business Finance Homework Help

The assignment below will assess your knowledge and understanding of  the participants in a trust, and your ability to apply the process for  removing a trustee.

Directions

Read the scenario below carefully, and then research the tax issues  using CCH Intelliconnect. Answer the following questions in 1-2  double-spaced pages:

1. Is hostility between a trustee and beneficiary a valid reason for the removal of a trustee?
2. If there were five beneficiaries in the trust and three were pleased  with the trustee’s actions and two were incensed and wanted the trustee  removed, should the “majority rule” apply to this decision?
3. Read and compare the cases Matter of Brecklein’s Estate, 6 Kan.App.2d 1001, 637 P.2d 444 (1981), and Edinburg v. Cavers,  22 Mass. App. Ct. 212, 492 N.E.2d 1171 (1986). What are the  circumstances a court should consider before deciding a request for  removal of a trustee based on hostility between the trustee and a  beneficiary?

Scenario: In a testamentary trust, Antony Lopez  named his friend, Jorge Garcia, trustee of substantial property placed  in trust for the benefit of Antony’s wife, Helena, and his sister,  Debra. Hostility existed between Jorge and Helena long before the trust  was created, and it became worse soon after Antony’s death, when the  trust became active. Antony gave Jorge broad discretion in distributing  trust income, and when Jorge distributed a much greater percentage of  the trust’s annual income to Debra than to Helena, Helena became  outraged. She demanded that Jorge be removed as an unsuitable trustee  because of his act of disloyalty by favoring one beneficiary over  another.